Mr. Melhem: Sir, you just met with your personal envoy to the Middle East,
Senator Mitchell. Obviously, his first -- first task is to consolidate the
cease-fire. But beyond that you've been saying that you want to pursue
actively and aggressively peacemaking between the Palestinians and...the
Israelis. Tell us a little bit about how do you see your personal role,
because, you know, if the President of the United States is not
involved, nothing happens -- as the history of peace making shows. Will
you be proposing ideas, pitching proposals, parameters, as one of your
predecessors did? Or just urging the parties to come up with their own
resolutions, as -- as your immediate predecessor did?

President Obama: Well, I -- I think the
-- the most important thing is for the United
States to get engaged right away.

Mr. Melhem:
Right.

President Obama: And George Mitchell is somebody of
enormous stature. He is one of the few people who have international
experience brokering peace deals.

And so what I told him is start by listening, because all too often the
United States starts by dictating -- in the past on some of these issues
-- and we don't always know all the factors that are involved. So, let's
listen. He's going to be speaking to all the major parties involved and
he will then report back to me. From there, we will formulate a specific
response.

Ultimately, we cannot tell either the Israelis or the Palestinians
what's best for them. They're going to have to make some decisions. But
I do believe that the moment is ripe for both sides to realize that the
path that they are on is one that is not going to result in prosperity
and security for their people, and that, instead, it's time to return to
the negotiating table.

It's going to be difficult; it's going to take time. I don't want to
prejudge many of these issues, and I want to make sure that expectations
are not raised so that we think that this is going to be resolved in a
few months. But if we start steady progress on these issues, I'm
absolutely confident that the United States -- working in tandem with
the European Union, with Russia, with all the Arab states in the region
-- I'm absolutely certain that we can make significant progress.

Mr. Melhem: You've been saying essentially that we should not look at these
issues -- like the Palestinian-Israeli track and separation from the
border region -- you've been talking about a kind of holistic approach
to the region. Are we expecting a different paradigm in the sense that
in the past one of the critiques -- at least from the Arab side, the
Muslim side -- is that everything the Americans always test -- tested with the
Israelis, if it works. Now there is an Arab peace plan, there is a
regional aspect to it. And -- And you've indicated that. Would there be any
shift, a paradigm shift?

President Obama: Well -- Well, here's what I think is important.
You look at the
proposal that was put forth by King Abdullah of Saudi Arabia --

Mr. Melhem: Right.

President Obama: I might not agree
with every aspect of the proposal, but it took great courage --

Mr. Melhem: Absolutely.

President Obama: -- to put forward something that is as significant as
that.
I think that there are ideas across the region of how we might pursue
peace.
I do think that it is impossible for us to think only in terms of the
Palestinian-Israeli conflict and not think in terms of what's happening
with Syria or Iran or Lebanon or Afghanistan and Pakistan.

Mr. Melhem:
Sure.

President Obama: These things are interrelated.

Mr. Melhem:
Sure.

President Obama: And what I've said -- and I think Hillary
Clinton has expressed this in her confirmation -- is that if we are
looking at the region as a whole and communicating a message to the Arab
world and the Muslim world, that we are ready to initiate a new
partnership based on mutual respect and mutual interest, then I think
that we can make significant progress.

Now, Israel is a strong ally of
the United States. They will not stop being a strong ally of the United
States. And I will continue to believe that Israel's security is
paramount. But I also believe that there are Israelis who recognize that
it is important to achieve peace. They will be willing to make
sacrifices if the time is appropriate and if there is serious
partnership on the other side.

And so what we want to do is to listen, set aside some of the
preconceptions that have existed and -- and have built up over the last several
years. And I think if we do that, then there's a possibility at least of
-- of achieving some breakthroughs.

Mr. Melhem:
Now I want to ask you about the broader Muslim world, but let me -- one
final thing about the Palestinian-Israeli theater. There are many
Palestinians and Israelis who are very frustrated now with the -- with
the current
conditions and they are losing hope; they are disillusioned; and they
believe that time is running out on the two-state solution because --
mainly because of the -- the settlement activities in...Palestinian-occupied
territories.
Will it still be possible to see a Palestinian state -- and you know the
contours of it -- within the first Obama Administration?

President Obama: I think it is
possible for us to see a Palestinian state -- I'm not going to put a
time frame on it -- that is contiguous, that allows freedom of movement
for its people, that allows for trade with other countries, that allows
the creation of businesses and commerce so that people have a better
life.

And, look, I think anybody who has studied the region recognizes that
the situation for the ordinary Palestinian in many cases has not
improved. And the bottom line in all these talks and all these
conversations is: Is a child in the Palestinian Territories going to be
better off? Do they have a future for themselves? And, is the child in
Israel going to feel confident about his or her safety and security? And
if we can keep our focus on making their lives better and look forward,
and not simply think about all the conflicts and tragedies of the past,
then I think that we have an opportunity to make real progress.
But it is not going to be easy,
and that's why we've got George Mitchell going there. This is somebody
with extraordinary patience as well as extraordinary skill, and that's
what's going to be necessary.

Mr. Melhem: Let me take a broader look at the whole region. You are
planning to address the Muslim world in your first 100 days from a
Muslim capital. And everybody is speculating about the capital. If you have anything further, that would be great. How
concerned are you -- because, let me tell you, honestly, when I -- when
I see
certain things about America -- in some parts, I don't want to
exaggerate -- there is a demonization of America.

President Obama: Absolutely.

Mr. Melhem: It's become like a new religion, and like a new religion it has new
converts, like a new religion has its own high priests.

President Obama: Right.

Mr. Melhem: It's own, even, religious texts.

President Obama: Right.

Mr. Melhem: And...in the last -- since 9/11 and because of Iraq, that alienation,
you know, is
-- is wider between the Americans. And...in generations past, the United
States was held high. It was the only Western power with no colonial
legacy.

President Obama: Right.

Mr. Melhem: How concerned are you and...because people sense that you have a
different political discourse. And...I think, judging by [inaudible] and
Zawahiri and Osama bin Laden and all these, that... --

President Obama: Yeah, I noticed.

Mr. Melhem:
-- a chorus --

President Obama: They -- They seem nervous.

Mr. Melhem: They seem very nervous, exactly.
And...now, tell me why they should be more
nervous?

President Obama: Well...I think that
when you look at the rhetoric that they've been using against me before
I even took office --

Mr. Melhem: I know, I know.

President Obama: -- what that tells me is that their ideas are bankrupt.

Mr. Melhem: Absolutely.

President Obama: ...There's no actions that they've taken that say a child in the Muslim
world is getting a better education because of them, or has better
health care because of them.

In my inauguration speech, I've spoke[n] about: You will be judged on what
you built, not what you destroy. And what they've been doing is
destroying things. And over time, I think the Muslim world has
recognized that that path is leading no place, except more death and
destruction.

Now, my job is to communicate the fact that the United States has a
stake in the well-being of the Muslim world that the language we use has
to be language of respect. You know, I have Muslim members of my family.

Mr. Melhem: True.

President Obama: I have
lived in Muslim countries.

Mr. Melhem: The largest one.

President Obama: The largest one, Indonesia. And so what I want to
communicate is the fact that in all my travels throughout the Muslim
world, what I've come to understand is is that regardless of your faith --
and America is a country of Muslim[s], Jews, Christians, non-believers --
regardless of your faith, people all have certain common hopes and
common dreams.

And my job is to communicate to
the American people --

Mr. Melhem: True.

President Obama: -- that the Muslim world is filled with extraordinary
people who simply want to live their lives and see their children live
better lives. My job to the Muslim world is to communicate that the
Americans are not your enemy. We sometimes make mistakes. We have not
been perfect. But if you look at the track record, as you say, America
was not born as a colonial power, and that the same respect and
partnership that America had with the Muslim world as recently as 20 or
30 years ago --

Mr. Melhem: True.

President Obama: -- there's no reason why we can't restore that. And
-- And that I
think is going to be an important task.
But ultimately, people are going to judge me not by my words but by my
actions and my Administration's actions. And I think that what you will
see over the next several years is that I'm not going to agree with
everything that some Muslim leader may say, or what's on a television
station in the Arab world; but I think that what you'll see is
somebody who is listening, who is respectful, and who is trying to
promote the interests not just of the United States, but also ordinary
people who right now are suffering from poverty and a lack of
opportunity. I want to make sure that I'm speaking to them, as well.

Mr. Melhem: And any decision on --
on from where you will -- you will be addressing the Muslim world or is
too early?

President Obama: Well, you know, I'm not
-- I'm not going to break the news right here.

Mr. Melhem: Maybe next time?

President Obama: But maybe next
time. ...But it is something that's going to
be important.

Mr. Melhem: True.

President Obama: I -- I want people to recognize, though, that we are going to
be making a series of initiatives. Us sending George Mitchell --

Mr. Melhem: Right. True.

President Obama: -- to the Middle
East is fulfilling my campaign promise that we're not going to wait
until the end of my Administration to deal with Palestinian and -- and Israeli
peace. We're going to start now. It may take a long time to do --

Mr. Melhem: Sure.

President Obama: -- but we're going
to do it now. We're going to follow through on our commitment
for me to address the Muslim world from a Muslim capital.
We are going to follow through on many of my commitments to do a more
effective job of reaching out, listening, as well as speaking to the
Muslim world.

And I-- you're going to see me following through with dealing with a
drawdown of troops in Iraq, so that Iraqis can start taking more
responsibility. And finally, I think you've already seen a commitment,
in terms of closing Guantanamo --

Mr. Melhem: Absolutely.

President Obama: -- and making clear that even as we are
decisive in going after terrorist organizations that would kill innocent
civilians, that we're going to do so on our terms, and we're going to do
so respecting the rule of law that I think makes America great.

Mr. Melhem: President Bush framed the war on
-- on terror conceptually in a -- in a way that
was very broad, "War on terror," and he used sometimes certain terminology
that the -- that the many people -- "Islamofascism."1

President Obama: Right.

Mr. Melhem: You've always framed it in a
different way, specifically against one group called al Qaeda --

President Obama: Right.

Mr. Melhem: -- and their
collaborators. And -- And is this one way of --

President Obama: ...I think that you're making a very important point. And
-- And that is that the language we use matters. And what we need to understand
is, is that there are extremist organizations -- whether Muslim or any
other faith in the past -- that will use faith as a justification for
violence. We cannot paint with a broad brush a faith as a consequence of
the violence that is done in that faith's name.
And so you will I think see our Administration be very clear in
distinguishing between organizations like al Qaeda -- that espouse
violence --

Mr. Melhem: Right.

President Obama: -- espouse terror and act on it -- and people who may disagree
with my Administration and certain actions, or may have a particular
viewpoint in terms of how their countries should develop. We can have
legitimate disagreements

Mr. Melhem: True.

President Obama: -- but still be respectful. I cannot respect
terrorist organizations that would kill innocent civilians and we will
hunt them down.
But to the broader Muslim world what we are going to be offering is a
hand of friendship.

Mr. Melhem: Will the United States ever live with a nuclear Iran? And if not, how
far are you going in...the direction of preventing it?

President Obama: You know, I said during the campaign that it is very
important for us to make sure that we are using all the tools of U.S.
power, including diplomacy, in our relationship with Iran.

Now, the Iranian people are a great people. The Persian civilization is
a great civilization. Iran has acted in ways that's not conducive to
peace and prosperity in the region -- their threats against Israel, their
pursuit of a nuclear weapon which could potentially set off a[n] arms race
in the region that would make everybody less safe; their support of
terrorist organizations in the past -- none of these things have been
helpful.

But I do think that it is important for us to be willing to talk to
Iran, to express very clearly where our differences are, but where there
are potential avenues for progress. And we will, over the next several
months, be laying out our general framework and approach. And as I said
during my inauguration speech, if countries like Iran are willing to
unclench their fist, they will find an extended hand from us.